Counterparty poopers

Just as French investors were beginning to embrace new asset classes as underlyings for structured products, counterparty risk concerns are pushing them back to collective funds. But issuers and distributors are confident that structured products can endure, and that business will be boosted for structured funds. By Sophia Morrell

The collapse of Bear Stearns has sent shockwaves throughout the entire financial community. Structured products have not been immune to the effects of the bank's downfall. In the past, simply the words 'capital guarantee' would have been enough to reassure investors that their money was protected. Now, amid a climate of sliding credit ratings, investors are questioning just how safe their money is with an issuer, capital guaranteed or not. While there is as yet no precedent for the loss of funds